Oil prices to go up next week: Deora

Govt will increase fuel prices next week, but would ensure that the weaker sections are not burdened by the hike.

The government will increase fuel prices next week, but would ensure that the weaker sections are not burdened by the hike, Petroleum Minister Murli Deora said on Saturday.

The proposed hike in petro prices is aimed at offsetting losses of oil PSUs, which are losing over Rs 160 crore a day due to the government's freeze on raising retail prices of fuel.

"The unprecedented hike in international crude prices, has forced us to revise the fuel prices. The oil marketing firms are suffering a daily loss of around Rs 160 crore. But, this hike will not be big and will be made after ensuring that weaker sections of the society are not much affected by this," Deora told reporters here.

Speaking at the inaugural function of the Lube Oil Base Stocks (LOBS) project at state-run BPCL's refinery here, Deora said the Government is exploring various options, including duty cut on these products.

"We have held discussions with all political parties, including the Left and the BJP. They have also made a few suggestions, which would also be considered," he said, adding that the Cabinet will take the final decision in this regard next week.

Asked what has been the Left's stance over the issue, Deora said: "The Left has made it clear that weaker sections should not be affected by this hike and we are working on this."

He said UPA Chairperson Sonia Gandhi has also asked the government to ensure the same.